¹HuiChen Chiang,²YuLu Liao,³Alroy Linford McBride

^1,2,3Ming Chuan University, Taiwan

DOI : https://doi.org/10.47191/ijsshr/v6-i3-23

Google Scholar Download Pdf
ABSTRACT

The objective of this research is to conduct an empirical analysis of the relationship between Economic Growth and Domestic Commercial Lending in Belize. This research is guided along the supply leading and demand following paradigms. Economic growth in this study is measured by annual Gross Domestic Product (GDP) which is employed as the dependent variable. The financial development variables applied are: Commercial Credit to Belize’s Primary, Secondary and Tertiary Sectors, Domestic Commercial Credit to the Private and Public Sectors and Interest Rates (lending). These are employed as the independent variables. The results of this research found that (i) Commercial lending in general has a positive effect on overall economic growth, particularly in the secondary and tertiary sectors (ii) Domestic Commercial Credit to the Private Sector has a positive relation on economic growth (iii) Domestic Credit to the Public Sector does not positively affect economic growth (iv) Increase in Lending Rates has not deterred consumer borrowing and furthermore, economic growth. This research is trying to understand possible factors promoting sustainable Economic Growth of Belize.

KEYWORDS:

Belize, Commercial Credit, Lending Rates, Private Sector, Public Sector

REFERENCES

1) Abusharbeh, M., (2017). The Impact of Banking Sector Development on Economic Growth: Empirical Analysis from Palestinian Economy. Journal of Emerging Issues in Economics, Finance, and Banking, 6(2), 2306-2316.

2) Aigner, D. J., & Chu, S. F. (1968). On Estimating the Industry Production Function. American Economic Review, 58(1), 826-839.

3) Ajao, O. S., (2013). The Causality between Banking Sector Reforms and Sectoral Output Growth: Empirical Evidence from Nigeria, 1 (1), 12.

4) Belize Tourism Board. (2018). Statistics Digest 2018 (Statistics Digest), Belize Tourism Board, Retrieved From https://belizetourismboard.org/wp-content/uploads/2019/07/2018-TT-Statistics- Digest_Final.pdf.

5) Belize Tourism Board., (2019). Travel and Tourism Statistics Digest 2019, Belize Tourism Board, Retrieved from https://infogram.com/overnight-tourist-arrivals-1hdw2j7kjq1x2l0.

6) Central Bank of Belize., (2019). 2019 Annual Reports of Statements and Account (Annual Report). Central Bank of Belize, Retrieved from https://www.centralbank.org.bz/docs/default-source/4.2.4-annual-reports/annual-report- 2019.pdf?sfvrsn=2.

7) Morris, F., (2019). A Blueprint for Capital Market Development in Belize. The Inter- American Development Bank, Retrieved fromhttps://www.policytracker.bz/wp-content/uploads/2019/11/A-Blueprint-for-Capital-Market-Development-inBelize-Final- Report.pdf

VOlUME 06 ISSUE 03 MARCH 2023